China’s Housing Giant Falls: No Bailout, Economic Aftershocks Loom
China’s Last ‘Too-Big-to-Fail’ Housing Giant Loses State Support | Bloomberg, as the title suggests, is a story about a pivotal shift in China’s approach to its struggling real estate sector. The narrative here is that the government, after years of propping up developers, is now pulling back on providing financial lifelines. This marks a significant change, especially because these developers were considered so massive and intertwined with the economy that their failure could have caused a national crisis. Now it seems like the government is letting the chips fall where they may.
This lack of bailouts, a somewhat novel approach in this context, has sparked a lot of conversation.… Continue reading
Matt Underwood